Gold drifts lower, set for biggest annual loss in three decades

Singapore  (Dec 26)   Gold drifted lower in thinyear-end trade on Thursday as a rally in equities and a strong economic recovery in the United States dented its safe-haven appeal.

Gold is headed for a near 30 percent drop this year as the U.S. Federal Reserve is set to begin unwinding its stimulus measures, ending a 12-year rally that was prompted by rock bottom interest rates and monetary stimulus by global central banks. 
   
 FUNDAMENTALS
 * Spot gold had eased 0.2 percent to $1,201.71 an ounce by 0013 GMT. The decline this year is gold's biggest loss since 1981.
 * Data on Friday showed that orders for long-lasting U.S. manufactured goods surged in November and a gauge of planned
 business spending on capital goods recorded its largest increase in nearly a year, pointing to sustained strength in the economy.
* Strong economic data prompted the Fed to announce last week that it would begin cutting back its $85 billion in monthly
bond purchases from January.
 * U.S. shares edged higher into record territory on Tuesday before the Christmas holiday, while Japan's Nikkei share average
hit a six-year closing high on Wednesday, supported by optimism over the global economy.
* Non-resident Indians are bringing gold into the country by taking advantage of rules that allow each individual to carry 1
kg of the metal, helping traders cope with restrictions on imports during the peak wedding season.